Various challenges have been identified regarding Africa’s electrical infrastructure. The operational and financial sustainability thereof, as well as the impact on the economy.

The main challenge currently in the public’s eye is the lack of generation capacity and thus the implementation of load shedding programmes to build up generation capacity. A second challenge, which can be identified as the largest is an aging transmission network struggling to keep up with a developing economy.

Furthermore planning and implementation horizons for generations and transmission is long and network capacity problems cannot be fixed in a short duration.

Average tariff

Electricity tariffs have been increasing steadily in South Africa and the National Energy Regulator in South Africa (NERSA) have been holding back high tariff hikes due to a slow growing economy. The situation in Africa regarding tariff increases are the same.

At the end of the day Eskom in South Africa and Energy Regulators in Africa will have to realise the required cash flow to sustain operations, maintenance and development.

Either the government will have to give grants and/or electricity tariffs will have to be increased drastically.

Uncertainties range from planning and completion (delays) of new power stations, operational and maintenance problems with existing power stations, generation and transmission lead times, economic growth, increase in electric tariffs, the cost of power generation and transmission will keep pressuring electricity pricing in the future to government management and control competency on national and local level.